Mobile App Monetization Methods
Updated: Dec 3, 2019
When launching a mobile app for your business, you may be wondering about the kinds of options available to cash in on your new business endeavor.
Luckily, there are several different routes you can take.
We are going to highlight the popular options below.
Depending on your application, and the kind of services it provides, you will be able to determine which choice is the best for you.
Let’s get started!
In-app purchasing is the most intuitive option for e-commerce and shopping applications, which are drastically rising in popularity.
This creates a shopping experience that is completely exclusive to your brand, which gives you a leg up beyond a traditional e-commerce website.
This means that your customers can download the app for free, giving them a download incentive.
Then, they can browse your items and make purchases from there.
It is also common for gaming apps to have in-app purchases as well, it customers want more in-depth access to gaming features.
Freemium is kind of similar to the in-app purchase system insofar as the user gets to download the app for free.
This gives them access to a very limited amount of features.
Users have the opportunity to purchase a monthly subscription if they want access to the full range of features.
So, they get a free taste, but they need to pay for the real deal.
This is common with gaming apps, as the free version often places limitations on the amount of resources the gamer gets to have.
If they want more resources in order to level-up, they need to purchase in order to do so.
But this is also used for various different services, such as Spotify and other music apps.
It is also becoming increasingly common for meditation and wellness apps, such as Headspace.
The premium app asks users to pay upfront.
So, with this option, there is no free download.
These apps are generally very detailed, specialized and catered to their specific niche.
The subscription-based method is a mixture of freemium and premium.
With this system, you can offer a monthly or annual subscription and have the option to either provide a highly limited free version or be paid-only.
Generally, apps with subscription-based platforms are very content-driven, so they are being updated all the time in order to keep the interest of their users.
This is one of the oldest ways to monetize a mobile app, and it’s still very popular.
If your app is free or freemium, advertising is a viable option.
Ads are a little bit tricky to maneuver because if they are too disruptive, no one will use the app.
They need to be well-placed so it doesn’t annoy the user too much.
Plus, you need to make sure your ads are relevant to your application.
That way, users are potentially interested in the ad you’re featuring and you can drive traffic to the advertisement.
This tactic also uses ads, but these are ads from companies that you have partnered up with in order to deliver complementary services to a particularly targeted niche demographic.
In this way, you are able to widen your audience pool by sharing your target audience.
This can drastically increase your customer base, and by proxy, sales!
If you are looking to monetize your mobile app, these options are all great candidates.
Just keep in mind the kind of services that your mobile app provides, and from there, you can make an intuitive decision as to what monetization strategy will work best for you.
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